Sainsburys Bank "low rate" loan

DCFC79

zxmike wrote: »

After seeing a link on this site I applied for a Sainsburys Bank low rate loan. The headline rate was 4.8% with the small print suggesting the usual subject to status and 51% of our customers receive this rate.

I have a good credit history but have a reasonable amount of outstanding debt. I applied for debt consolidation in the loan category.

I was approved but offered a rate of 9.1%

When I phoned to complain I was referred to the small print. I asked however what I would need to do to get the lower rate and they said they couldn't discuss my credit profile. I suggested given a hypothetical situation, what conditions would stop the lower rate from being offered to which I got the same "can't tell you" answer.

Being cynical here this seems like a bit of a scam. Yes I know its "subject to status" but from the responses its difficult to understand if the low advertised rate is being replaced with a higher rate for the right reasons.

Do I have any grounds for complaint here ?

Thanks
Mike

So you called to complain when you weren't offered the rate of 4.8%, bit of a waste of a phone call. its not a scam at all although if thats what you want to believe then thats fine. You just didnt tick all the boxes at Sainsburys to get the low rate, you current debt is a factor as well.

No you dont have any grounds for complaint her.

ch3101

They can't tell you why you didn't get the headline rate because ....

Say 100 people get together and decided to all apply for a loan with the one company on the same day.
They could change each person's circumstances ever so slightly, analyse the results and hence know exactly what to tell the bank to get a low rate and not to be asked to prove things either.

Imagine they had said "you owe more than 3 months salary, that was all it was".
You would then tell them your salary was higher if you were an unscrupulous character and obtain a low rate even though you are higher risk.


By the way, I am not saint that you are about to or ever want to commit fraud, I'm just pointing that out

TheMoney

The APR offered to you is directly linked to your 'risk level'. This will be decided based upon the information held on your credit file, and the information submitted on the application. It's not really possible to say what you would need to obtain the lowest rate, as very few people would come anywhere close to understanding the calculations involved. It's simply that with your current circumstances, based on facts and previous experience, you are a slightly higher risk. It's unfortunate that we live in a world where everything is decided based on what others have done, but with the demand for financial services it's the only option there is.

[Deleted User]

ChopperST wrote: »

I'm sorry that is just rubbish. The bank's internal algorithm will decide what rate you receive based on the risk to the bank. Clearly your husband was a "good" risk and they offered a lower APR, this will be due to many factors such as income, debt to income ratio, history of paying back debt etc.

You have to be honest when applying for a loan when you state what it is for, anything else would constitute a fraudulent application. The "advisor" I'm afraid is quite wrong in this case and to post in this thread advising people that if they are honest in their application they will receive a preferential rate is quite frankly laughable...

Well, I am glad I made you laugh :rotfl:I only said what we were told.

zxmike

dealer_wins wrote: »

I have highlighted the reason why I think you wouldn't get their lowest rate.

You really need a great credit profile, stable address and employment, and not much other debt to get the best rate with any loan company.

10years in same owned property 6 years with current employer. Debt of 1/4 annual salary currently split between low rate card at 6.9% fixed and something like 19% credit card.

I would have thought that debt consolidation and reduction of overall monthly repayment would be considered a responsible action and lower risk ?

I haven't checked my credit profile recently but a couple of years back it was excellent and there's nothing to suggest it should have changed. Never missed a payment on anything in my life !

imoneyop

zxmike wrote: »

Debt of 1/4 annual salary

Which will be 1/2 salary when the new loan is taken into account

zxmike wrote: »

I would have thought that debt consolidation and reduction of overall monthly repayment would be considered a responsible action and lower risk ?

See above - they only have your word that you will pay off the existing debts, so they will underwrite you assuming that you won't.

zxmike wrote: »

I haven't checked my credit profile recently but a couple of years back it was excellent and there's nothing to suggest it should have changed. Never missed a payment on anything in my life !

Might be an idea to check it - for all you know someone could have put late payment markers on in error or even worse, someone could have taken credit out in your name.

[Deleted User]

zxmike wrote: »

I would have thought that debt consolidation and reduction of overall monthly repayment would be considered a responsible action and lower risk ?

If that's what everyone actually did when they applied for debt consolidation loans, then you'd be right.

Unfortunately, since so many people just use the opportunity to double their debt, it's a higher risk segment.

BugsyBrowne

zxmike wrote: »

10years in same owned property 6 years with current employer. Debt of 1/4 annual salary currently split between low rate card at 6.9% fixed and something like 19% credit card.

I would have thought that debt consolidation and reduction of overall monthly repayment would be considered a responsible action and lower risk ?

I haven't checked my credit profile recently but a couple of years back it was excellent and there's nothing to suggest it should have changed. Never missed a payment on anything in my life !

I'm afraid your Excellent score you see on Experian actually has nothing to do with what your risk to other lenders is.